Nairn property prices: flats very over-priced
I posted a while back that Nairn property was relative cheap by comparison to other areas in the region.
However, I had mainly been looking at the higher end of the property market, ie, detached homes.
Now that I’ve been looking at the price of flats in Nairn, it is obvious that these are woefully over-priced, with estate agents really trying to take the mickey on pricing.
For example, in the pic above, the Kylauren flats overlooking the Dunbar golf course. I know for a fact these were being sold for around £175,000 a few months ago – yet now one has come onto the market for £220,000!
That’s an increase of almost 25% in just a few months. What conditions would account for such an increase in value? None, really.
The same story is told on the High Street – I’ve had a look at a couple of these over the past week, and they are also very over-priced.
The irony is, the flats on the High Street have been on the market for around a year, and not sold – but it seems people are holding out for the highest possible asking price, no matter how unrealistic.
This is especially the case of one where the flat is sitting empty, but has been lovingly redecorated. A very nice flat indeed, but even the estate agent admitted the price the seller wanted was higher than a surveyor would give credit for.
The irony is that when you leave a property empty, it is simply losing money – at the very least, it could have paying tenants. So the idea of leaving a property on the market for a year without selling, but still insisting on keeping a higher than valued price makes little sense.
Still, I guess that’s the seller’s perogative.
In the meantime, the flats behind Bridgemill are coming up to completion – so perhaps the flood of new flats on the market in Nairn will force general prices down as supply exceeds demand.
However, I wouldn’t be at all surprised if the developer ends up also joining the “cash in crew” by putting them on sale for the highest price possible, even if that means they do not sell at all.
Overall, if you’re looking for a detached property in the normal 3-4 bedroom range, Nairn is still releatively cheap. The pricing on flats, though, is very over-valued, and you can buy 3 bedroom detached properties in Beauly and even Inverness for the same price.
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Hi Brian i think you will find that the flats at bridgemill are Albyn housing and as far as i know are for rent rather than for sale, and i would imagine with albyn’s backlog of folk waiting to be housed, they will be full up more or less after completion.
Ah, so still a shortage of supply of flats in Nairn, then – but also a shortage of buyers!
Brian,
Your property snap shots seem very selective and don’t give a true picture. There are some flats for sale in Nairn for around £90,000, and as I said in a previous property post this is not cheap, but a lot less money than those that you have highlighted.
Some flats on the High Street have sold despite what you say. Other properties that have been on the market for a long time with a high price tag may just be speculation by the seller that someone will come along, love the property and give the asking price.
Despite a slight closing in the pricing gap between Nairn and some other parts of the country, it is still the case that many people arrive here from the South and pick up what they see as a bargain.
Property developers might well hold out for higher prices as well. With interest rates so low they might as well speculate rather than sell a property for a low price and have the money gaining little or no interest in the bank. Having tenants greatly complicates a sale and certainly makes the property less attractive if only in that it is no longer ‘brand new’.
Despite some signs that perhaps the economy is looking up it remains a fact that not many new mortgages are being issued. With few first time buyers unable to enter the housing market we only have a small movement of properties no matter what type they are.
If you are a single first time buyer £90,000 is an awful lot of money to borrow. The most generous mortgages are only offering 3 times salary plus 10%+ deposit so you are looking at only a few professionals who stand a chance of getting a mortgage.
It is a great shame that property has been seen as an investment; first and foremost it is a place where people live.
It is only investors and the banks that gain from high prices; the average mortgage holder certainly does not
Bill
Indeed, the property market is almost still over-valued, but it seems that parents especially are being expected to pull deposits out of their own home equity.
Even still, when I see flats at £150,000+ not selling for over a year, it easily points out that the property is over-valued by local standards.
And seeing the Kylauren flat offered for sale at +25% its price a few months back just shows estate agents have completely lost touch with reality.
In my opinion.
“Even still, when I see flats at £150,000+ not selling for over a year”
Not sure if you are aware of what has happened to the economy in the last year
Bill
Something about property prices falling 15% over the past two years or something?
Yet somehow in Nairn they’re up 25% this year!
Certainly asking prices, anyway.
Too many flats in Nairn now. Build houses with gardens for the poor youth on slave wages
The town has Sandown, dump Deveron now and build houses for Nairn’s youth. Stand up Nairnites don’t let the developers decide. We own that land, we can build houses ourselves ‘Nairnshire housing association’ anyonear?e a fair rent and build more with the income.
Listen to the common sense coming from the Suburban council on this!
Just checked behind Bridgemill – 25 rented flats, and 20 to be for sale. Should be interesting to see how that develops in terms of pricing!
As always, house purchase isn’t my forte -
However, in case anyone comes across this post looking to rent, I’d like to note that the prices to rent in Nairn are actually really good right now. =)
E2W Property, which I use, have a fairly steady price of £450 for the sort of flat (1-3 bedroom depending) that a single person or couple would be after.
As for buying properties – I noticed the place on the Brae corner dropped a lot of prices when the recession was full-on. Chances are they’re back up again now we’re almost in the clear, though.
Recession over?
Another bit of froth on the London Casino and everyone’s juices are flowing again. Be it on your own head!
There are many dangerous underlying factors…
£220,000 for a crummy flat ! that’s approximately 11 times the average wage in the Highlands !
If prices related to wages, based on historical multiples of about 3 times income, the average price of a property would be around £60,000.
Once the political shackles are taken off the base rate, we might see prices return to these levels.
I agree with Mr/Mrs/Ms first time complainer above that what is needed are genuinely affordable properties, somewhere in this range to allow average people to live normal lives without chasing this lunatic helter skelter price spiral ever upwards.
I like ftc’s proposal for Sandown.
I’m sick of hearing from estate agents bodies and developers representatives that a property price recovery may be coming, as though this should be a desirable scenario.
It’s about time for the country to cut it’s dependency on credit and bogus house price ‘prosperity’, take the cold medicine of the asset price falls, and get back to living a saner, less slefish, greed driven existence.
Ach you’ve got me going again !!!